What Do You Call the Portion of Your Total Return

question 55

Multiple Choice

What do you call the portion of your total return on a stock investment that is caused by an increase in the value of the stock.

• A) Dividend yield.
• B) Risk-free return.
• C) Capital gain.
• D) None of the above.

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Definitions:

Annual Percentage

Often referred to in context of the annual percentage rate (APR), it represents the annual rate charged for borrowing or earned through an investment.

Return Requirement

The minimum rate of return an investor expects to achieve on an investment, influencing the types of assets included in their portfolio.

Cash Flows

The aggregate money movement into and out of an enterprise, significantly impacting its cash on hand.

Over-Valued

A term that describes securities or assets whose market price is considered too high relative to their intrinsic value or financial performance.